Rising Costs and Improving Demand, PTA Prices Continue to Soar

According to the price monitoring, the domestic PTA market maintained a strong rise and was at a 3-year high. As of June 8, the average market price was 7,726 CNY/ton, up 6.81% from the previous day and up 65.20% year-on-year.

The OPEC production increase plan did not effectively improve market expectations, and crude oil prices continued to run high, with Brent crude prices rising to a high of $120. The supply side of PX has reduced concerns and increased, and the cost of PTA is strongly supported.

In addition, low processing fees have forced the increase in maintenance of PTA factories. Although some devices have been restarted recently, they are still relatively low compared to the same period last year. The current industry operating rate remains around 73%. With the accelerated resumption of work and production in downstream polyester factories, the start of construction has increased slightly, and the terminal demand has improved. Therefore, there are signs of phased marginal improvement in the supply and demand of PTA.

Analysts believe that under the logic of rising costs and improving demand month-on-month, short-term PTA prices will continue to strengthen.